The IBA is calling on Illinois bankers to contact the Fed and urge board members not to reopen the debit card rules in Regulation II. Following activism and litigation by the largest global merchants, the Federal Reserve announced this week that it will meet Wednesday to discuss "revisions" to debit card interchange caps due to the Durbin Amendment.
The Fed has not shared details about the discussion or any proposed changes. The agency instead said that documentation would be made available for public inspection 20 minutes before the meeting.
We believe that Fed changes to debit card rate caps will raise the cost of basic banking services for consumers by driving up checking account and ATM fees, inconsistent with current White House efforts to reduce consumer fees.
Contact the Fed and urge them to oppose further rate caps, and please share this with your banking colleagues!
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